August 23, 2013

Natives subsidize Canada, not vice versa

What if Natives Stop Subsidizing Canada?There is a prevailing myth that Canada's more than 600 First Nations and native communities live off of money--subsidies--from the Canadian government. This myth, though it is loudly proclaimed and widely believed, is remarkable for its boldness; widely accessible, verifiable facts show that the opposite is true.

Indigenous people have been subsidizing Canada for a very long time.

Conservatives have leaked documents in an attempt to discredit chief Theresa Spence, currently on hunger strike in Ottawa. Reporters like Jeffrey Simpson and Christie Blatchford have ridiculed the demands of native leaders and the protest movement Idle No More. Their ridicule rests on this foundational untruth: that it is hard-earned tax dollars of Canadians that pays for housing, schools and health services in First Nations. The myth carries a host of racist assumptions on its back. It enables prominent voices like Simpson and Blatchford to liken protesters' demands to "living in a dream palace" or "horse manure," respectively.

It's true that Canada's federal government controls large portions of the cash flow First Nations depend on. Much of the money used by First Nations to provide services does come from the federal budget. But the accuracy of the myth ends there.

On the whole, the money that First Nations receive is a small fraction of the value of the resources, and the government revenue, that comes out of their territories.And:From the days of beaver trapping to today's aspirations of becoming an energy superpower, Canada's economy has always been based on natural resources. With 90 per cent of its settler population amassed along the southern border, exploitation of the land's wealth almost always happens at the expense of the Indigenous population.

Canada's economy could not have been built without massive subsidies: of land, resource wealth, and the incalculable cost of generations of suffering.

Overall numbers are difficult to pin down, but consider the following: Canadian governments received $9 billion in taxes and royalties in 2011 from mining companies, which is a tiny portion of overall mining profits; $3.8 billion came from exports of hydroelectricity alone in 2008, and 60 per cent of Canada's electricity comes from hydroelectric dams; one estimate has tar sands extraction bringing in $1.2 trillion in royalties over 35 years; the forestry industry was worth $38.2 billion in 2006, and contributes billions in royalties and taxes.